Mr. Hemti, you should be the answerer, not the questioner
Abdul Naser Hemmati; The head of the central bank for 34 months in the government of Hassan Rouhani, who, according to the official statistics of the country, has marked the worst period of the central bank’s management, has been very active in the legal space these days and has multiplied his activities in this sector.
He, who had separated from the Rouhani government in 1400 in the hope of getting the presidential seat, has remained in the election space until today and is regularly tweeting and posting on Instagram and talking in the virtual space, and his actions It questions the 13th government.
Hemmati, a non-media activist during the presidency of the Central Bank, is repeatedly demanding clarification and accountability from the 13th government and the president himself.
He regularly says that I had warned, I had said, I had noted that his management has marked the most brilliant era of the Central Bank of the country. During his period, money printing reached the maximum and Mr. Hemti’s policies and mistakes created dangerous conditions for Iran’s economy.
According to the available statistics, Mr. Hemti’s tenure at Central Bank is considered one of the weakest periods in this group.
Investigations show that from the beginning of Mr. Hemti’s tenure as the head of Central Bank from August 6, 1397 to 1400, the national currency of Iran has lost more than 180% of its value. The average monthly dollar rate, which was 8,900 Tomans at the end of July 2017 in the open market, reached more than 25,000 Tomans at the end of 2019 in the open market, which has increased by nearly 200%.
At the same time, the dollar rate was also established during Hemmati’s presidency of the Central Bank. Regarding the inflation rate, Mr. Hemti once again set another record in his name; In July 2017, that is, at the same time as Mr. Hemti was the head of the Central Bank, the inflation rate announced by the Statistics Center for the twelve months ending in July 2017 compared to the twelve months ending in July 2016 was 10.2 percent and the inflation rate for the twelve months ending in March 2017 compared to the twelve months ending in March 2016 also reached 31% and the inflation rate for the twelve months ending in March 2019 compared to the twelve months ending in March 2018 also reached 47.1%, which shows the poor management of the central bank by Mr. Hemti during this period.
During Mr. Hemti’s tenure, liquidity has grown significantly (more than twice). Liquidity at the end of 2017 reached 3,476 billion tomans from 1,882 billion tomans at the end of 2019 and more interestingly, according to the statistics of the Central Bank, the volume of money base, which is the most powerful money and the main source of inflation, increased from 265,000 billion tomans before Abdul Nasser took office. Hemmati in the central bank reached 458 thousand billion tomans. In fact, more than half of the monetary base has been created in less than three years of Mr. Hemti’s tenure at the Central Bank, which means that Hemti is the king of increasing the monetary base. Also, the increasing liquidity ratio in 2017 reached 7.5 from 7 at the end of 2018.
It must be said, Hemmati has the most unplanned track record in creating financial indiscipline. During Mr. Hemti’s administration, the debt of the public sector to the central bank has increased by 54 thousand billion tomans. At the end of 2018, the debt of the public sector to the central bank was 96 hemats, but at the end of 2018, this figure has reached 150 hemats. In other words, the Central Bank and the 12th government have had the worst track record in financial indiscipline.
Further examination of the performance statistics of Mr. Hemti’s period in the central bank’s claims department from banks indicates an increase of 36 Hemti in the banks’ debts. At the end of 2018, the amount of Central Bank’s claims from banks was 110 hemats, which reached 146 hemats at the end of 2019, which shows the increase in the demands of the Central Bank, which was due to overdrafts by banks. The interbank market was also greatly inflated during the period under review, and in fact, the sources of this market were the money of the central bank that circulated. It looked like the banks were lending to each other, but in reality the money belonged to the central bank.
During Hemti’s tenure at the Central Bank, we saw a growth of 38 Hemti in the volume of the interbank market from the pocket of the Central Bank. The average daily volume of the interbank market at the end of 2018 was 369 thousand billion rials, which reached 755 thousand billion rials at the end of 2019.
It is worth mentioning that from July 2019 to January of the same year, the daily volume of the interbank market experienced a significant growth, which indicated the high deficit of bank resources during Mr. Hemti’s administration at the Central Bank. In the mentioned time frame, i.e. July 2019 to January 2019, the volume of the interbank market reached 1000 thousand billion Rials, so that the interbank market rate reached above the ceiling of the corridor from 14%, and such a deficit of interbank resources is one of the factors of the sharp decrease. The value of the stock market also increased.
Regarding the situation of foreign exchange reserves during the Hemmati period, we come to the problem of dollarization. At the end of 2017, the foreign exchange reserves of the Central Bank were 110 billion dollars, which showed the existence of a significant amount of foreign exchange reserves in the country at the same time as the administration of Mr. Hemti, but at the end of 2019, this amount of reserves reached less than 100 billion dollars, which in some According to statistics, the amount of reserves is 15 billion dollars.
Therefore, his period has been one of the weak periods of the central bank. A railway line was built during the period of Mr. Rouhani, and unfortunately, it became a dangerous heresy that did not exist anywhere in the world, and that was the overdraft of banks from the Central Bank. Also, the amount of foreign exchange reserves at the end of 2019 is not precisely known, but it shows a decrease in foreign exchange reserves during this period. Before the period of the 11th and 12th governments, monetary base changes were exclusive to the government’s performance, but during the Hemmati period, banks were also involved in monetary base fluctuations, and most of these overdrafts were related to private banks.
Today, if we see the future bank as a problem in the banking system, it originates from the management of these gentlemen. According to the mentioned statistics, the management of the central bank in controlling inflation, maintaining the value of the national currency and guiding and monitoring the banks during the period of Hemmati’s management is not acceptable.